The ‘Everywhere Millionaire’: How Ordinary Business Owners Amass Hidden Fortunes

A new book by economists Owen Zidar and Eric Zwick challenges the common perception that America’s wealthiest individuals are predominantly technology entrepreneurs or hedge fund managers. Instead, their research identifies a vast demographic of “stealthy wealthy” individuals who have accumulated millions through ordinary, hard work over decades.

In their work, “The Everywhere Millionaire,” Zidar and Zwick analyze Treasury and IRS data to match tax records with individual business ownership. They found that approximately 5 million U.S. households possess net worths of at least $5 million, holding combined wealth more than 13 times that of the Forbes 400. The majority of these individuals are owners of pass-through businesses, such as sole proprietorships and partnerships, which allow business profits to flow directly to personal tax returns.

“This is not just a story about wealth being on the coast, Silicon Valley and finance,” Zwick, an economics professor at the University of Chicago Booth School of Business, told CBS News. “This is a much broader phenomenon, and also much closer to home for a lot of Americans.”

The study highlights that many of these millionaires own local, brick-and-mortar enterprises. Examples include dental practices with multiple offices, HVAC contractors, and beer distributors. While the recent stock market surge has created a growing class of 401(k) millionaires, Zwick and Zidar focused on those who amassed wealth far beyond what typical saving could achieve. The economists identified 3 million private business owners in this group, with an average wealth of roughly $25 million.

Unlike the unassuming millionaires described in the 1990s bestseller “The Millionaire Next Door,” who were known for driving used cars and living modestly, the “everywhere millionaires” in this study often enjoy visible signs of prosperity, including large homes and yachts. However, their paths to wealth remain rooted in tangible, everyday services rather than headline-grabbing tech startups.

The typical profile of these millionaires is a 62-year-old married college graduate who started their business rather than inheriting it. About three-quarters of this cohort launched their own companies, driven primarily by a desire for independence and freedom rather than purely financial gain. Dick Portillo, founder of Portillo’s restaurants, was cited as a prime example, having grown a $1,100 hot dog stand investment into a business sold for $1 billion.

Tax structures play a significant role in this wealth accumulation. Pass-through entities benefit from the ability to deduct 20% of business income from taxes, avoiding the double taxation faced by C-corporations. Zwick noted that these tax advantages have made these owners significantly wealthier than W-2 employees over the last 40 years.

Despite concerns about artificial intelligence disrupting the workforce, Zwick remains optimistic about the enduring American Dream. He argues that the tactile, real-world problems solved by these local businesses—such as heating, ventilation, and air conditioning—will remain in demand regardless of technological changes. “Technology will change what these businesses look like, but these tactile, real-world problems are still going to be there,” he said.